ONE in five shopkeepers in the North West faces the prospect of closure due to tobacco smuggling, a survey has revealed.

The study also shows that a third of shop owners have considered reducing staff because of the problem.

And more than half of the region's shopkeepers are aware of counterfeit tobacco being sold in their area, which represents a huge rise from 32% last year.

The research was carried out by Retailers Against Smuggling which represents over 16,000 independent retailers across the UK.

Dave Garroch, who owns three Bargain Booze off-licenses in Ellesmere Port, says he's suffered a dip in trade due to tobacco smuggling and has even been approached to buy cigarettes to sell in his store.

He said: 'It's been noticeable that cigarette sales have gone down in my premises. You think that it may just be down to the price but there are definitely a lot of people smuggling them in.

'I've been told about people trying to sell them in pubs and I've even been offered them myself. That I find really hard-faced because it's those people who are doing me out of my custom.

'This problem will get worse if the Government continues to lump tax on cigarettes.' The survey showed that 71% of retailers nationwide also believe that the solution to tobacco smuggling and cross-border shopping is for the Government to reduce or freeze tobacco tax.

And they are looking at the next Budget as an opportunity for the Government to bring UK tax levels more in line with the rest of the EU.

Solly Khonat, the North West Spokesman of Retailers Against Smuggling, said: 'These findings will shock many people, but not many independent retailers.

'We have been aware that the Government's high tobacco tax policy has been affecting our sales for quite some time now.

'How are we expected to compete with the smugglers when they can offer cigarettes for half the price that we can?

'What the Government needs to grasp is that the only reason smug-glers target the UK is because the high tax levels in this country provide them with the greatest potential profit in the EU.'